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While the UK continues to suffer high #inflation, #China has slipped into #deflation...

As we may be about to see, this can cause serious issues for market economies too;

Facing deflation the rational decision on any discretionary purchase is to delay (and wait for further price drops)... such delays start to encourage further prices falls, confirming any decision to delay & indeed suggesting further delay is (also) rational.

A viscous circle results;

is this about to happen in China?